BlackRock (BLK) and State Street Investment Management (STT) are facing fresh competition as New York City's pension system opens a bidding process for about $92 billion of stock index funds the two firms currently oversee, Bloomberg News reported Friday.

BlackRock manages about $65 billion of the passive equity portfolio and State Street about $27 billion, the report said.

The city is "a long-standing client, and we look forward to continuing our work with them," a BlackRock spokesman said, according to the report.

New York City Comptroller Mark Levine and the pension trustees are seeking managers for passive public-equity indexing strategies, including traditional approaches and those focused on environmental, social and governance factors. The contract will run for an initial three years with renewal options, the comptroller said Friday in a statement.

The existing contracts run through this year, and bids are due July 15.

As of March 31, the pension systems held $127.11 billion in public equity investments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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